New tourism minister supports cut in tourism VAT

Tracey Crouch supports cut in the VAT rate to 5% for tourism and hospitality businesses as one of her first comments as she takes on the role of minister with responsibility for sport and tourism in the Department of Culture Media and Sport (DCMS).

Prior to her appointment she recently said about her own constituency: “….The secretary of state will be aware that across Kent tourism accounts for the direct employment of nearly 65,000 people. Tourism VAT rates across the EU are much lower than in the UK, and if VAT on accommodation was reduced to 5% that would boost jobs and bring a further £1m into Kent. What conversations has he had with the Treasury about the benefits of a future cut to VAT, as that would bring jobs and growth into Kent and the UK as a whole?”

Ufi Ibrahim, chief executive of the British Hospitality Association said ….

“With the recent Tourism Inquiry report serving as a great foundation, we look forward to working closely with …Tracey especially in leading the delivery of the Inquiry’s recommendations to reduce tourism VAT, improve the speed and cost of visas and to diversify and strengthen the Tourism Council. The time has come for the hospitality industry to be empowered to help our economy reach its potential with more jobs, visitors and tourists across the UK.”